In 2013, the Magtag Company sold 16.000 ovens. Magtag estimated that 14% of the machines would require repairs under the two-year warranty at an average cost of $50. During 2013. Magtag had an actual outlay of $64,000 for repairs under warranty. Magtag uses the expense warranty accrual method. Refer to Exhibit 9-2. At what amount should the company record warranty expense for 2013? $62,000 $112,000 $134, 400 $126,000 Refer to Exhibit 9-2. What amount should the company report for estimated liability under warranties at the end of 2013? $72, 400 $62,000 $48,000 $84,000 John Company includes three coupons in each package of cookies it sells. In exchange for 24 coupons, a customer will receive a cookie sheet. John estimates that 30% of the coupons will be redeemed. In 2014. John sold 4,000,000 boxes of cookies and purchased 150,000 Cookie sheets at $2.50 each. During the year. 960.000 coupons were redeemed. Refer to Exhibit 9-3. What amount should John record as premium expense for 2014? $121, 250 $450,000 $375,000 $500,000